Can bond yields fall even further from these historic lows?

Stewart Cowley, head of fixed income, Old Mutual Asset Managers There is a strong case for keeping the cost of borrowing down for corporations, especially when we are facing limited pricing power for companies and low growth in the Western world. To achieve low borrowing costs, benchmark government bond yields have to be kept low. Although there is some uncertainty about exactly how so-called quantitative easing actually works, what it clear is that you have to do a lot of it to have even a limited effect. So whilst banks are unwilling or unable to lend on a large scale, I am ind...